Andrews Sykes profits fall after mild winter
Andrews Sykes Group on Friday reported a drop in interim profits after milder weather early in the year weakened demand for its heating and boiler hire products.
The heating and cooling solutions provider booked a profit before tax of £6.8m for the six months ended 30 June, down 28% from the same period last year, with revenue 8% lower at £35.0m.
The AIM-listed company said a mild winter meant fewer opportunities for its heating and boiler hire products, while a dry first half of the year had an adverse impact on the pump hire business.
Revenue from the UK hire business dropped 12% due to a 40% slump in year-on-year sales, while operations in the Benelux region revenue declined 9%.
Hire businesses in Italy and Switzerland traded ahead of the previous year and the UK air conditioning installation business also achieved growth.
Andrews Sykes held its interim dividend steady at 11.90p per share.
Trading has improved since 30 June, with UK pump hire revenue and air conditioning revenue from mainland Europe both stronger after extreme weather conditions across the continent.
Jacques-Gaston Murray, chairman of Andrews, said: "The board has continued to invest in the business, with new depot openings during the year and further hire fleet investments. This will ensure that the business can optimise any weather driven opportunities whilst at the same time growing the geographic coverage organically."
Andrews Sykes shares were down 15.08% at 535.00p at 0931 BST.